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You founded your own firm two years ago. You initially contributed $250 000 of your own money and in return you received 2.5 million shares of stock. Since then, you have sold an additional 1.25 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-Suppose you sold the 1.25 million shares to the angel investor for $500 000. What was your percentage ownership in the company immediately following the angel investor's investment?
Classical Conditioning
The process by which a previously neutral stimulus becomes associated with a stimulus that already elicits a response and, in turn, acquires the capacity to elicit a similar or related response. Also called Pavlovian or respondent conditioning.
Behavior Therapy
A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.
Graduated Exposure
In behavior therapy, a method in which a person suffering from a phobia or panic attacks is gradually taken into the feared situation or exposed to a traumatic memory until the anxiety subsides.
Systematic Desensitization
A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation.
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